Fed’s Yellen: macroprudential policy must balance rules and discretion


Hard macroprudential policy rules must be augmented with discretionary powers for supervisors in order to effectively manage systemic risk, Janet Yellen, the vice chair of the Federal Reserve's board of governors, said on Monday.

In her maiden speech as Fed deputy, delivered in Colorado, Yellen said fixed macroprudential policy rules must be complemented by the ability for regulators to intervene at their discretion. "Fixed rules will diminish the need for policymakers to make the difficult deci

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: